Should We Run Ads on Social Media in This Sluggish Market? | Article – HSBC VisionGo
Allow us to help you decide the best way to move forward in advertising your products through social media by reading our article.
When it comes to a sluggish market, companies tend to cut budgets but keep some for advertising. They aim for the conversion rate when selling their ads. It's the same situation as a restaurant continues sending flyers to attract patrons even though there aren't many passers-by on the street. The reason behind this is that the business will be much more difficult if they don’t do it.
Should Brands Consider Conversion Rate?
Other than considering the conversion rate, one should bear in mind that the difference between social media advertising and traditional media advertising could be quite distinctive. The former will enjoy a greater budget span and a more flexible price range due to its bidding nature, while the latter has a comparatively fixed price range. If SMEs expect to devote a smaller amount in advertising, social media advertising has a greater advantage. It has an elasticity of price range than traditional media advertising. Moreover, the flexibility in creativity is also a great advantage in making social media ads. Through continuous trial testing and refinement, it helps the customers to figure out the most suitable outcome they have been looking for.
Promotion of the Brand Image
Besides aiming at the conversion rates, the launch of ads also promotes the brand image and its spokesperson. Such soft ads are relatively more expensive. So, it's expected that during this downturn in the market, these soft ads will be relatively reduced on different platforms. At present, people are still doing their ads, but the reduction in budget is an indisputable fact. As a result, this type of image advertising is the first thing to be cut off. People choose to postpone this type of publicity and focus on ads aiming for conversion rates. It would be a salvation to the business.
The Price of Social Media Ads
Moreover, some kinds of services or products are not suitable to be promoted under such a gloomy situation, especially since some may even be in a difficult state to continue their operation. For example, in this pandemic, the tourism industry is under severe circumstances, and ads could not help with it. Hence, there might be fewer ads on social media. The price of social media ads might be lowered as there is less competition and lesser exposure. Yet, the cost related to conversion rates might not be lowered. Social media ads are not competing with each other only. The pandemic news is another great competitor. People may be easily attracted by overwhelming pandemic information. Even though the ads may have enough exposure time, the attention toward the ads may be snatched away by the pandemic updates.
Thus, even if the advertising price currently falls, it might not be good timing for launching more ads. Whether it's a good time to adjust the advertising strategy, it depends on the following key points. Check whether the company's strategy and the products have the advantages under the pandemic and whether they can match with the current market conditions.